HHS's Indian Health Service awards $5.3M for nursing services, with $1.3M initially obligated

Contract Overview

Contract Amount: $2,482,049 ($2.5M)

Contractor: Wesley Medical Staffing, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-24

End Date: 2026-06-30

Contract Duration: 279 days

Daily Burn Rate: $8.9K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CSU WESLEY REGISTERED NURSING SERVICES BASE OBLIGATED AMOUNT: $1,326,992.64 AGGREGATE OBLIGATED AMOUNT: $5,307,970.56

Place of Performance

Location: LAME DEER, ROSEBUD County, MONTANA, 59043

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.5 million to WESLEY MEDICAL STAFFING, INC. for work described as: CSU WESLEY REGISTERED NURSING SERVICES BASE OBLIGATED AMOUNT: $1,326,992.64 AGGREGATE OBLIGATED AMOUNT: $5,307,970.56 Key points: 1. The contract's aggregate value of $5.3 million suggests a significant need for temporary nursing staff over its period. 2. Competition dynamics for this contract are noted as 'COMPETED UNDER SAP', indicating a streamlined procurement process. 3. The duration of 279 days for the base period and potential for extension warrants monitoring for performance and cost. 4. The contract is categorized under Temporary Help Services, aligning with the need for flexible staffing solutions. 5. Geographic focus on Montana (MT) highlights a specific regional demand for healthcare professionals. 6. The firm fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.

Value Assessment

Rating: good

The base obligated amount of $1.33 million for approximately 279 days of service suggests a daily rate of roughly $4,756. This appears to be within a reasonable range for specialized registered nursing services, especially considering potential travel and administrative costs associated with temporary staffing. Benchmarking against similar contracts for nursing services in remote or underserved areas would provide further clarity on value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Small Acquisition Procedures), which typically involves a limited number of bidders compared to full and open competition. While this can expedite the procurement process, it may limit the pool of potential offerors and potentially impact price discovery. The specific number of bidders is not provided, making a definitive assessment of competition level challenging.

Taxpayer Impact: Limited competition under SAP may result in slightly higher prices than a fully competed contract, but the efficiency gains can sometimes offset this. Taxpayers benefit from a faster acquisition of critical services.

Public Impact

Beneficiaries include patients served by the Indian Health Service facilities in Montana, who will receive essential nursing care. Services delivered are temporary registered nursing support, crucial for maintaining operational capacity and patient care standards. The geographic impact is concentrated in Montana, addressing specific healthcare staffing shortages within the state. Workforce implications include the provision of temporary nursing jobs, potentially alleviating immediate staffing pressures for the IHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if the scope of 'temporary help' is not tightly managed.
Reliance on temporary staff can sometimes impact continuity of care and team cohesion.
Ensuring qualified and credentialed staff are consistently provided is critical for patient safety.

Positive Signals

Addresses an immediate need for registered nursing services, ensuring patient care continuity.
The firm fixed-price structure provides budget predictability.
Competition under SAP, while limited, suggests an effort to acquire services efficiently.

Sector Analysis

The healthcare staffing sector, particularly temporary and specialized services, is a critical component of the broader healthcare industry. Contracts like this support government agencies in meeting healthcare demands, especially in areas facing shortages. The market for registered nursing services is competitive, with agencies specializing in providing temporary staff to hospitals and health systems. Spending benchmarks vary widely based on location, specialty, and contract duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Wesley Medical Staffing, Inc., is likely a medium to large enterprise, and their engagement does not inherently create opportunities for small business subcontractors unless specified in the contract's terms or pursued voluntarily by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Indian Health Service (IHS) contracting officers and program managers within the Department of Health and Human Services (HHS). Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Indian Health Service (IHS) Contracts
Department of Health and Human Services (HHS) Procurements
Temporary Healthcare Staffing Services
Registered Nursing Services Contracts
Federal Healthcare Delivery

Risk Flags

Potential for high per-unit cost due to temporary staffing model.
Limited competition may impact price optimization.
Dependence on temporary staff could affect care continuity.
Need for rigorous vetting of temporary personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.5 million to WESLEY MEDICAL STAFFING, INC.. CSU WESLEY REGISTERED NURSING SERVICES BASE OBLIGATED AMOUNT: $1,326,992.64 AGGREGATE OBLIGATED AMOUNT: $5,307,970.56

Who is the contractor on this award?

The obligated recipient is WESLEY MEDICAL STAFFING, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-06-30.

What is the track record of Wesley Medical Staffing, Inc. with federal contracts, particularly with the Indian Health Service or HHS?

A review of federal procurement data would be necessary to fully assess Wesley Medical Staffing, Inc.'s track record. Information such as past performance ratings on similar contracts, any history of contract disputes or terminations, and the volume and type of previous federal awards would provide crucial context. Understanding their experience with IHS or HHS specifically would indicate their familiarity with the agency's requirements and operational environment. Without specific data on their past federal performance, it's difficult to definitively assess their reliability and capability for this current contract.

How does the per-day cost of these nursing services compare to market rates for temporary registered nurses in Montana?

The base obligated amount of $1,326,992.64 over a period of approximately 279 days (assuming the base period aligns with the contract duration of 279 days) yields a daily rate of roughly $4,756. This figure represents the total cost, which likely includes not just the nurse's salary but also agency overhead, administrative fees, travel, and profit. To benchmark this effectively, one would need to compare it against average bill rates for temporary registered nurses in Montana, considering specialty, experience level, and geographic location within the state. Rates can vary significantly, but this daily aggregate cost appears high and warrants further investigation into its components.

What are the specific risks associated with relying on temporary help services for critical nursing roles within the IHS?

Relying on temporary help services for critical nursing roles presents several risks. Firstly, there's a potential for inconsistent quality of care if the vetting and credentialing process for temporary staff is not rigorous. Secondly, continuity of care can be disrupted, as temporary nurses may lack familiarity with specific patient populations, facility protocols, or electronic health record systems. Thirdly, there's a risk of increased costs over time if the contract is repeatedly extended or if the agency's markups are substantial. Finally, there's a potential impact on morale and workload for permanent staff who may need to orient and support temporary colleagues.

What is the historical spending pattern for temporary nursing services by the Indian Health Service in Montana?

Analyzing historical spending patterns for temporary nursing services by the IHS in Montana would provide valuable context for this $5.3 million award. This would involve examining contract data over the past several fiscal years to identify trends in obligated amounts, contract durations, and the number of awards for similar services. Understanding whether this award represents an increase, decrease, or stable level of spending can indicate changes in staffing needs, budget allocations, or the effectiveness of recruitment efforts for permanent staff. Significant deviations from historical norms might signal underlying issues or strategic shifts within the IHS's Montana operations.

What specific nursing specialties are covered under this contract, and are they aligned with the IHS's most pressing needs in Montana?

The provided data classifies this contract under 'Temporary Help Services' (NAICS 561320) and specifies 'Registered Nursing Services'. However, it does not detail the specific specialties (e.g., ER, ICU, pediatrics, general duty) required. The Indian Health Service often faces critical shortages in various specialties, particularly in rural and remote areas. To assess alignment, one would need to cross-reference the contract's statement of work with IHS's documented staffing priorities and identified needs in Montana. If the contract primarily covers general duty nursing, it might be less impactful than if it addresses highly specialized and scarce roles.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H709-BAIHS25Q-017

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 HARBOR DR STE 300, SAUSALITO, CA, 94965

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,136,034

Exercised Options: $3,809,041

Current Obligation: $2,482,049

Actual Outlays: $1,499,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 75H70923D00004

IDV Type: IDC

Timeline